Want to know how you can see Small Cap Rockets trade action?
Lucky you, trader. Recently, Matt Monaco was sitting at his trading desk answering questions during the Small Cap Rockets office hours…
That’s when it dawned on him that too many traders are missing out on KEY lessons. Let’s fix that here and now.
Strap in! Matt’s compiled 7 REAL Small Cap Rockets trade alerts from the chat room. Before we dig in, know that past performance is NOT indicative of future results. We’re sharing these trade lessons to help you understand what the awesome traders who run Small Cap Rockets see.
Want to study the markets with Tim Bohen, John Papa, and Matt Monaco? Learn more about the Small Cap Rockets chat room here.
Let’s get to those Small Cap Rockets trades and key lessons from Matt.
(Quick pro tip: click to view the charts in full view in a new tab.)
Table of Contents
- 1 Small Cap Rockets Trade #1: Luckin Coffee Inc. (OTCPK: LKNCY)
- 2 Small Cap Rockets Trade #2: Greene Concepts, Inc. (OTCPK: INKW)
- 3 Small Cap Rockets Trade #3: Santo Mining Corporation (OTCPK: SANP)
- 4 Small Cap Rockets Trade #4: Exela Technologies, Inc. (NASDAQ: XELA)
- 5 Small Cap Rockets Trade #5: Atari SA (OTCPK: PONGF)
- 6 Small Cap Rockets Trade #6: Singlepoint, Inc. (OTCPK: SING)
- 7 Small Cap Rockets Trade #7: American Battery Metals Corporation (OTCQB: ABML)
- 8 7 Hot Small Cap Rockets Trades: Conclusion
- 9 One Platform. One System. Every Tool
Small Cap Rockets Trade #1: Luckin Coffee Inc. (OTCPK: LKNCY)
Matt put LKNCY on his Small Cap Rocket trade watchlist in late 2020.
LKNCY has all the signs of a classic penny stock company. The SEC sued it for alleged fraudulent accounting practices. It crashed from roughly $50 down to $1 while also being delisted to the OTC market.
Then, in late January, rumors surfaced about a settlement between Luckin Coffee and the SEC. Ultimately, the rumors were false, but Matt rode the momentum for several days in Small Cap Rockets.*
His first entry was at $11 on January 26, and LKNCY hit a high of $15.09 on January 27.**
Matt’s key lesson: Keep tabs on the stocks on your watchlist to better know the big picture.
Small Cap Rockets Trade #2: Greene Concepts, Inc. (OTCPK: INKW)
This INKW trade is a textbook OTC breakout. When Matt sees an OTC breakout forming — with news — it immediately goes to the top of his watchlist. Why?
Because of the potential for MASSIVE percentage returns with OTC stocks. Take INKW for example…
Matt entered the stock at $0.034, and the next day, INKW hit a high of $0.1352. That’s nearly a 400% move!*
Even if you only take 50% of the move, like Matt did on INKW … that’s not too bad for one hour of work.**
Matts’ key lesson: Focus on your best risk/reward opportunities.
(**Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.)
Small Cap Rockets Trade #3: Santo Mining Corporation (OTCPK: SANP)
Here’s another OTC breakout … with a TWIST.
Matt says he missed the ideal entry on SANP’s breakout because it gapped up large and he didn’t want to chase. But missing the best or first entry doesn’t mean you’ve missed the entire play…
He patiently waited for SANP to pull to the Small Cap Rocket Line in the afternoon and entered 300,000 shares at $0.0272.
As the stock confirmed, he added to his position twice for a total of 3 million shares. Matt tried to be as patient, but once SANP failed to break to new highs for the third time, he locked in gains for a great single.**
Matt’s key lesson: Wait for the best entries … and singles add up!
Small Cap Rockets Trade #4: Exela Technologies, Inc. (NASDAQ: XELA)
Let’s clarify something — Small Cap Rockets is NOT just an OTC chat room…
Yes, OTC stocks can offer awesome opportunities, but Matt also trades listed stocks almost every day. Check out his trade on XELA…
This stock went on a huge two-day run before pulling back over 50%. In this scenario, Matt says he’s watching for a bounce or first green day pattern.
He noted several times in Small Cap Rockets that $3.80 was the key level for a bounce. Once XELA broke over $3.80 and then confirmed, it bounced to the low $4s.
Matt’s key takeaway: At the end of the day, it doesn’t matter which stocks you trade … The patterns stay the same. Learn, rinse, and repeat.
Small Cap Rockets Trade #5: Atari SA (OTCPK: PONGF)
When a company makes a ‘strategic shift’ to take advantage of a hot technology (like non-fungible tokens or NFTs), Matt wants a piece of the action.
For the better part of a week, NFT news dominated social media feeds … “How to buy NFTs…” Or “How to flip NFTs…” And “NFTs are the future…”
Here’s what top traders do when they see that kind of chatter or online hysteria … They diligently search for any company to release news about it. Sure enough, Atari ran with the NFT bait.
The play was a bit illiquid for Matt’s liking so he went with a smaller size. Also (as noted in Small Cap Rockets), Atari is an “F” ticker.
Tickers that end in F are foreign companies and often make strange moves. However, the smaller-sized trade allowed Matt to swing PONGF overnight for a solid 10% gain.**
Matt’s key lesson: Know how to find that market buzz and be prepared for it with a solid plan.
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Small Cap Rockets Trade #6: Singlepoint, Inc. (OTCPK: SING)
This SING trade was the result of a perfect storm…
Matt knows this setup. He saw the same situation in 2017… and completely missed the opportunity. But that experience came in handy for him this year.
He bought SING on the afternoon breakout to new highs. Using proper risk management and profit-taking goals, Matt sold SING into pieces during its afternoon run, locking in $6,214 before market close.**
Matt’s key lesson: Learn from your mistakes. You never know when they’ll come in handy down the line.
Small Cap Rockets Trade #7: American Battery Metals Corporation (OTCQB: ABML)
Last but not least, here’s Matt’s ABML trade from late January 2021.
ABML was one of the strongest stocks in the OTC market for several months. During its run, it broke out several times…
The chart above shows the start of the last breakout ABML had on its final supernova run.
Notice a theme with these seven charts? Matt looks for the same reliable patterns every single day.
Like the other trades in this post, ABML was a multiday breakout that held up into the afternoon. As it broke to new highs on the day, Matt bought and swung it overnight (looking for a gap up and morning spike).**
Matt’s key lesson: If it ain’t broke, don’t fix it. Stick to your patterns.
7 Hot Small Cap Rockets Trades: Conclusion
That’s a wrap on seven textbook trade examples from the Small Cap Rockets chat room. Want to know how you can get in the same chat room with Matt Monaco, as well as John Papa and Tim Bohen — two of the best long-biased traders Matt knows?
What do you think — are you ready to join the Small Cap Rockets room and learn from these awesome trades? Leave a comment below and let us know!
*Reported gains are not typical. Most traders lose. Past performance is not indicative of future results. Always do your due diligence and never risk more than you can afford to lose.
Never attempt to copy or mirror the trades discussed on this website or any alerts. Attempting to do so may result in substantial financial losses. Instructor’s alerts are not provided in real time. For that reason, it is highly unlikely you will be able to buy the stocks at the same entry price, or sell the stocks at the same exit price, to achieve the same or similar profits obtained by the instructors.